Upfront Investor Share Market Wrap 24th July 09

[youtube]ttp://www.youtube.com/watch?v=7WZED4We_Qo[/youtube]A number of economic reports are predicting rising unemployment, lower demand and pricing for commodities, stable interest rates and a general slowing of most economic activities such as travel and transport services during the 09/10 financial year. This will obviously affect not only the share market but other investment vehicles. That said money is still being poured into superannuation as a result of the 9 per cent contribution guarantee, which cannot continue to be held in cash therefore it is likely it will find its way into the share market at some point in time. Right now I am seeing more and more investors becoming confused about what to do with their money. Over the past two years investors have been switching money around various investment vehicles in the hope that one will deliver on their expectations with some moving in and out of investments within a few months on unrealistic expectations. This has been fueled by the fear of loosing and a lack of education about how investments work, both of which are counter productive in the longer term. Investors would be better off taking the time to understand the three golden rules to wealth creation, which includes spending less than you earn, investing wisely and then leaving your money alone so it can grow. So what can we expect in the market? There is an old saying that when you least expect it, expect it. Over the past two weeks the market has risen quite strongly in what I believe is a last ditch effort to reach new highs since the low in March 2009. The last time the market rose for more than 10 days straight was following the March 2009 low. While this run up started the bullish run we have experienced over the past 4 months, I believe the current run up over the past two weeks will result in the market achieving its high for the year. Given this, I do not expect the market will continue to rise for much longer before falling into its normal correction that occurs every year. I believe the market will peak within the next one or two weeks and then fall into a low in either September or November. Right now I would recommend investors wait until we can confirm the next low before buying rather than jump in now thinking they are missing out as better prices are likely to be gained in a few months time. Dale Gillham Chief Analyst Wealth Within[/youtube]A number of economic reports are predicting rising unemployment, lower demand and pricing for commodities, stable interest rates and a general slowing of most economic activities such as travel and transport services during the 09/10 financial year. This will obviously affect not only the share market but other investment vehicles. That said money is still being poured into superannuation as a result of the 9 per cent contribution guarantee, which cannot continue to be held in cash therefore it is likely it will find its way into the share market at some point in time. Right now I am seeing more and more investors becoming confused about what to do with their money. Over the past two years investors have been switching money around various investment vehicles in the hope that one will deliver on their expectations with some moving in and out of investments within a few months on unrealistic expectations. This has been fueled by the fear of loosing and a lack of education about how investments work, both of which are counter productive in the longer term. Investors would be better off taking the time to understand the three golden rules to wealth creation, which includes spending less than you earn, investing wisely and then leaving your money alone so it can grow. So what can we expect in the market? There is an old saying that when you least expect it, expect it. Over the past two weeks the market has risen quite strongly in what I believe is a last ditch effort to reach new highs since the low in March 2009. The last time the market rose for more than 10 days straight was following the March 2009 low. While this run up started the bullish run we have experienced over the past 4 months, I believe the current run up over the past two weeks will result in the market achieving its high for the year. Given this, I do not expect the market will continue to rise for much longer before falling into its normal correction that occurs every year. I believe the market will peak within the next one or two weeks and then fall into a low in either September or November. Right now I would recommend investors wait until we can confirm the next low before buying rather than jump in now thinking they are missing out as better prices are likely to be gained in a few months time. Dale Gillham Chief Analyst Wealth Within[/youtube]

A number of economic reports are predicting rising unemployment, lower demand and pricing for commodities, stable interest rates and a general slowing of most economic activities such as travel and transport services during the 09/10 financial year. This will obviously affect not only the share market but other investment vehicles. That said money is still being poured into superannuation as a result of the 9 per cent contribution guarantee, which cannot continue to be held in cash therefore it is likely it will find its way into the share market at some point in time.

Right now I am seeing more and more investors becoming confused about what to do with their money. Over the past two years investors have been switching money around various investment vehicles in the hope that one will deliver on their expectations with some moving in and out of investments within a few months on unrealistic expectations. This has been fueled by the fear of loosing and a lack of education about how investments work, both of which are counter productive in the longer term. Investors would be better off taking the time to understand the three golden rules to wealth creation, which includes spending less than you earn, investing wisely and then leaving your money alone so it can grow.

So what can we expect in the market?

There is an old saying that when you least expect it, expect it. Over the past two weeks the market has risen quite strongly in what I believe is a last ditch effort to reach new highs since the low in March 2009. The last time the market rose for more than 10 days straight was following the March 2009 low. While this run up started the bullish run we have experienced over the past 4 months, I believe the current run up over the past two weeks will result in the market achieving its high for the year.

Given this, I do not expect the market will continue to rise for much longer before falling into its normal correction that occurs every year. I believe the market will peak within the next one or two weeks and then fall into a low in either September or November. Right now I would recommend investors wait until we can confirm the next low before buying rather than jump in now thinking they are missing out as better prices are likely to be gained in a few months time.

Dale Gillham

Chief Analyst

Wealth Within

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